Pakistan Auto Policy Awaits IMF Review

This report is based on a source report.

Pakistan’s new auto policy is still not final, and car buyers should not expect immediate price cuts from the draft. According to source reports, the proposed Auto and Auto Parts Manufacturing Policy will first move from the Ministry of Industries and Production to the Finance Ministry, and only then be sent to the IMF for review.

That means the suggested changes in taxes and tariffs are still proposals, not active rules. So if you are planning a car purchase, do not treat the draft as a confirmed discount on imported or locally assembled vehicles.

As reported in a source report, officials briefed the Senate Standing Committee on Industries and Production that the policy has gone through several revisions and is still awaiting final approval. The committee was also told that the latest draft includes changes in vehicle tariffs, parts duties, localization targets, export support, and incentives for new energy vehicles.

What is being proposed

The draft policy reportedly includes lower tariffs on vehicles and auto parts. It also discusses reduced sales tax rates for battery electric vehicles, plug-in hybrid electric vehicles, and range-extended electric vehicles.

For buyers, this matters because any change in duty or tax structure can affect showroom prices, spare parts costs, and even booking trends. But until the policy is approved and notified, no one can calculate a confirmed new price from these proposals.

A related source report said the government may also use the policy to shape local manufacturing and export growth, but those ideas are still under discussion. You can read more background in Pakistan Auto Policy 2026 Faces IMF Talks and Pakistan Auto Policy 2026-31 Delayed due to IMF rejection.

EV output is rising, but infrastructure is still a concern

The same source reports said Pakistan produced 210,268 electric two- and three-wheelers in FY2025-26, up from 59,756 in the previous year. More than 85 companies reportedly hold licences to manufacture or assemble electric two- and three-wheelers in the country.

Officials also said the government is targeting at least 3,000 EV charging stations nationwide, with 40 motorway locations between Peshawar and Karachi identified for charging infrastructure. Even so, a clear count of working public charging stations was not provided.

This is important for readers because EV adoption is not only about lower taxes. It also depends on charging access, service support, trained workers, and parts availability. If those areas stay weak, many buyers may still hesitate even if the policy becomes more generous.

What buyers should do now

If you need a car soon, use today’s official price lists and dealership terms, not expected policy changes. If you can wait, keep watching the policy’s movement through the Finance Ministry and the IMF review. But do not delay an urgent purchase based only on hoped-for tax relief.

For EV buyers, it is wise to check charging access, battery warranty, service network, and spare parts before paying a deposit. The policy may still change again, and currency movement or fiscal pressure could also affect final prices.

For now, the message is simple: the auto policy process is still moving, but price relief is not yet confirmed. If your purchase is flexible, wait for the final policy. If it is urgent, buy on today’s verified numbers.

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